China seeks WTO panel for US EV subsidies dispute

China has asked the World Trade Organisation (WTO) to establish an expert panel to help settle in the dispute over electric vehicle (EV) subsidies under the U.S. Inflation Reduction Act (IRA) after negotiations failed with the US, Ministry of Commerce announced on Monday.

China, the world’s second-largest economy, initiated a WTO dispute in late March against the United States following the enactment of the IRA initiated by President Joe Biden’s administration.

The IRA offers significant tax credits to support the purchase of EVs by consumers and the production of renewable energy by companies, as part of the White House’s efforts to reduce carbon emissions in the US power sector.

China’s commerce ministry criticised the IRA for excluding products from WTO members like China, setting artificial trade barriers, and increasing the costs of transitioning to green energy.

China urged the US to adhere to WTO rules and refrain from misusing its industrial policies to disrupt global efforts to combat climate change.

Attribution: The Nikkei Asia